I follow the standard rule that a prospective tenant's gross income must equal 3 times the rent plus utilities.

Cash - $249,000 ( might be able to get it for around $225,000Annual Gross - $53,880Average Gross Monthly - $4,490Annual expenses - $8,891Monthly expense - $740Annual Net - $44,989Average monthly - $3,749What are your thoughts?

I personally run a best, worst, and average case scenario in terms of gross income and expenses and then make sure I can stomach all scenarios before I pull the trigger.  

You can look at the annual rent revenue and divide it by the gross potential rent, to get an idea of what kind of economic occupancy the seller has attained for the past few years.

After subtracting the portion we have already written off from our gross income, we are left with our true net amount called the "adjusted" income.

In this thread we are going to track the progress of our first Crowd Funded new construction project in Austin, TX1122 LindenSo let's play a little catch-up since we've already done quite a bit of work getting to where we are.DEAL ANAYLSYSSo the main thing we're looking for here is a 20%+ gross margin on the total cost of the project from a financial point of view. 

At only 3/4 of 1% /mo. in gross income per month, it doesn't seem to break even with the financing...mortgage payment alone is about $1300/mo.  

That is the denominator.Net operating income is the gross revenue less operating costs. 

The gross rents are 51k.

For instance in parts of TX or KY where you can get a 4 plex for 175k and the units rent for 600 each or 2400 gross a month the price to rent ratio (P/R) is 2400/175,000 = 1.37%.